Partner Bangkok
"Under the proposed reforms, nine types of business will be removed from the reserved businesses under the FBA, with the reason that those businesses are already regulated by the applicable laws and regulations under supervision of the competent government agencies."
Under the proposed reforms, nine types of business will be removed from the reserved businesses under the FBA, with the reason that those businesses are already regulated by the applicable laws and regulations under supervision of the competent government agencies. According to the Department of Business Development (“DBD”), the objective is to eliminate duplicative licensing requirements rather than to liberalise foreign investment generally.
The reforms are expected to benefit foreigners in the technology, telecommunications, financial services and energy sectors, whilst supporting Thailand’s broader efforts to enhance its attractiveness as a regional investment destination.
Background
The FBA prohibits foreigners from operating in the reserved businesses which prescribed into three lists. Foreigners wishing to operate any business included in List Three, which includes all service businesses except those prescribed on the ministerial regulations, must obtain a foreign business license (“FBL”) before commencing business in Thailand.
Although certain sectors are already regulated and supervised by the competent government agencies, foreigners have encountered additional requirements for obtaining an FBL from the DBD. This dual-approval framework has historically resulted in additional compliance costs, longer approval timelines and increased transaction complexity.
Scope of the Proposed Removal
The proposed reforms cover nine types of business, which may be grouped into three broad categories.
A) Businesses already regulated by specific laws and regulators
The following businesses are proposed to be removed from an FBL requirement:
(i) telecommunications services (for Type 1 telecommunications licences);
(ii) treasury centre (fund management centre) services;
(iii) lending businesses involving securities as collateral that are regulated under securities and derivatives laws;
(iv) agency, dealer, advisory or fund management services relating to derivatives whose reference assets or variables are not governed by the Derivatives Act B.E. 2546 (2003) (the “Act”) because services governed by the Act are already exempted from an FBL requirement under List Three (11) (a) of the FBA; and
(v) agricultural futures trading businesses operating through futures trading centres.
B) Intra-group shared services
The proposal also covers businesses that provide services exclusively within the same corporate group, including:
(vi) administrative, human resources and information technology management services provided to affiliated companies; and
(vii) domestic debt guarantee services provided to affiliated companies.
C) Other specialised services
The remaining proposed removals are:
(viii) leasing of space for the installation of electronic equipment used in financial services or automated vending and service machines; and
(ix) petroleum drilling services provided to petroleum concessionaires.
What This Means for Foreigners
"For eligible businesses, the removal of an FBL requirement would significantly reduce the time, financial and administrative burdens associated with establishing and operating businesses in Thailand."
A) Reduced Regulatory Burden
For eligible businesses, the removal of an FBL requirement would significantly reduce the time, financial and administrative burdens associated with establishing and operating businesses in Thailand.
B) Greater Certainty for Multinational Groups
The removal of treasury centre services, intra-group shared services and affiliate guarantee services would particularly be beneficial for multinational corporate groups seeking to centralise regional operations in Thailand.
C) Continued Compliance with Regulated Businesses
Importantly, the reforms do not eliminate regulatory oversight. Foreigners will continue be required to obtain approvals, licences and registrations under the relevant laws administered by the competent government agencies. The DBD has expressly confirmed that the proposal is not intended to permit foreigners to conduct these businesses without regulatory supervision.
D) Monitor Implementation
The proposed reforms have received the cabinet’s approval in principle but still require implementation through the relevant ministerial regulations and royal decrees. Foreigners should continue to monitor legislative developments and assess whether their businesses are removed and not subject to an FBL requirement.
Looking Ahead
These reforms reflect Thailand’s continuing efforts to modernise its foreign investment framework by reducing overlapping regulatory requirements whilst maintaining sector-specific oversight. If implemented, the changes would improve Thailand’s competitiveness and facilitate investment in high-value service industries without compromising regulatory safeguards.
How We Can Help
We regularly advise and provide foreigners on market entry, foreign ownership restrictions, licensing requirements and regulatory compliance for doing business in Thailand. We can assist with:
(i) assessing whether the intended businesses removed from List Three of the FBA;
(ii) determining whether other approvals remain necessary;
(iii) providing advice on the necessary regulatory compliance;
(iv) drafting an application to obtain necessary licence and/or an approval; and
(v) liaising with the competent government authorities and sectoral regulators.
Key contacts
Partner Bangkok
Associate Bangkok
